Ethereum (ETH) has jumped by 19% in the past 24 hours after pulling a massive short squeeze on the back of the SEC’s newly proposed rules for the crypto market.
The crypto market saw $2.7 billion worth of bearish positions being blown up yesterday, potentially setting a new record.
This wipeout has spilled over to today’s session, as short liquidations have now spiked to $3.1 billion in the past 24 hours, as multiple tokens broke above key resistances following the release of the “Regulation Crypto Assets” by the U.S. Securities and Exchange Commission (SEC).
Ethereum ETFs See Highest Single-Day Net Inflow Since October 2025
ETH alone accounts for $1 billion of that total, as the token broke past two key resistances — the $2,000 psychological threshold and the 200-day exponential moving average (EMA) at around$2,200.
A significant volume of stop orders for short positions probably sat above these levels, and that could have prompted a wave of short covering that fueled the rally to $2,300 at some point.
Trading volumes have shot up by 484% for ETH during this period, with $40 billion worth of the top altcoin exchanging hands during this period. This figure accounts for 14% of the asset’s circulating market cap, and has revived a market that had been dormant for months.
According to data from SoSoValue, exchange-traded funds (ETFs) linked to Ethereum attracted $189 million in net inflows yesterday — the highest single-day print since October 2025.
These are all early indications that the market is ready to turn things around, as the regulatory landscape in the United States continues to lean toward fostering a constructive environment for new crypto projects.
ETH Trading Volumes Are About to Send a Massive Buy Signal
As we have been stating in many of our previous Ethereum price prediction articles, most technical indicators and on-chain metrics indicated that the end of this bear market was near.
We were only missing a strong catalyst that prompted a short squeeze like the one we saw yesterday. We also highlighted that breaking past the $2,000 price zone could mark the beginning of ETH’s next bull market, as it did in November 2023 and April 2025.
Looking at market data from Santiment, this latest spike in trading volumes also supports a bullish outlook for ETH.
We have been tracking a historical buy signal associated with how volumes behave. The signal triggers whenever the 7-day and 30-day moving averages for this metric cross over. After months of a strong downtrend, the two lines are now just inches away from crossing.
